contestada

arnam Company currently produces and sells 26,000 units of a product that has a contribution margin of $9 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $48,600. The company has recently invested in new technology and expects the variable cost per unit to fall to $14 per unit. The investment is expected to increase fixed costs by $18,900. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)

Respuesta :

TomShelby

Answer:

BEP units 6,750

It needs to sale 6,750 to break-even

Explanation:

First, we calculate the new contribution margin:

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

sales price              24

new variable cost    14

contribution margin 10

Then we proceed with the BEP in units

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

fixed cost 48,600 + 18,900 = 67,500

contribution margin 10

[tex]\frac{67,500}{10} = Break\: Even\: Point_{units}[/tex]

BEP units 6,750

Otras preguntas